Principles for Operational Resilience (BCBS)
In the years that followed the Great Financial Crisis (GFC) of 2007–09, the Basel Committee’s reforms of its prudential framework have enhanced the supervision of the global banking system and resulted in a number of structural changes to strengthen banks’ financial resilience. While significantly higher levels of capital and liquidity have improved banks’ ability to absorb financial shocks, the Committee believes that further work is necessary to strengthen banks’ ability to absorb operational risk-related events, such as pandemics, cyber incidents, technology failures and natural disasters, which could cause significant operational failures or wide-scale disruptions in financial markets. In light of the critical role that banks play in the operation of the global financial infrastructure, increasing their resilience would provide additional safeguards to the financial system.